Due diligence on a property means thoroughly checking every legal, financial, and physical aspect of the property before you buy it so you avoid fraud, legal disputes, or hidden liabilities. Follow these steps on how to do due diligence on a property.
What are the Steps in the Due Diligence Process?
Start by inspecting the title deed and ownership chain from original grant to the current seller. Ensure there’s a clear, unbroken chain of ownership and that the seller has the legal right to sell the property. Verify sale deed, mother deed, gift/partition deed, and others as applicable.
Obtain an Encumbrance Certificate from the sub-registrar office covering at least the past 13 to 30 years. This certificate reveals whether the property has any liens, mortgages, loans, or legal claims registered against it that could affect your ownership.
Ensure the property has municipal approvals, land conversion certificates, sanctioned building plans, completion/occupancy certificates (OC/CC) and complies with local zoning laws. For under-construction projects, check RERA registration and builder documentation.
Ask for property tax receipts, utility bills, and local tax compliance records. Check that these payments are up to date and there are no pending dues that you’d inherit post-purchase.
Search civil court and registrar records for ongoing litigation, title disputes, or third-party claims related to the property. Pending legal issues may delay or derail your investment.
Physically inspect the property for encroachments, boundary issues, structural defects, and overall condition. If needed, hire a qualified surveyor or engineer for a detailed site check.
These steps can help you with conducting due diligence on a property.
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How to Do Due Diligence on a Property?
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2025-12-29T09:28:53+00:00 2025-12-31T20:00:03+00:00Comment
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